Allergy Therapeutics PLC (AIM:AGY, OTC:AGYTF) has said it is confident about the direction of funding discussions as it forecast that revenue for the first six months of its current financial year to be £39.9mln, down 18% compared to the same period a year earlier.
The decrease in revenue is primarily due to a voluntary short-term pause in production in the UK and the streamlining of some older products in the company's portfolio, the firm noted.
In the second half of the financial year, the allergy vaccines group said it expects sales to continue at a similar level compared to last year, before recovering in the following financial year.
The company's cash balance on December 31 2022 was £15.2mln. Following a subscription and debt financing announced in September 2022, the company received £7mln and expects to get a further £10mln next month by issuing loan notes.
“As previously announced, the company is reviewing funding options following the temporary pause in production that has resulted in the need for additional near-term funding,” investors were told in the half-year trading update.
“The company is increasingly confident that its funding discussions will result in a positive outcome and will update the market in due course,” it added.